1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Pavlova-9 [17]
3 years ago
14

A company purchased a weaving machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It

is estimated that the machine could produce 750,000 bolts of woven fabric over its useful life. In the first year, 105,000 bolts were produced. In the second year, production increased to 109,000 units. Using the units-of-production method, what is the amount of depreciation expense that should be recorded for the second year?
Business
1 answer:
Sholpan [36]3 years ago
3 0

Answer:

The amount of depreciation expense that should be recorded for the second year: $26,160

Explanation:

The units-of-production depreciation method is calculated by using the following formula:

Depreciation Expense = [(Cost of asset − Residual Value)/Life in Number of Units] x Number of Units Produced  = Depreciation Expense per unit x Number of Units Produced

In the company,

Depreciation Expense per bolt = ($190,000 - $10,000)/750,000 = $0.24

In the second year, 109,000 bolts were produced,

Depreciation expense for the second year = $0.24 x 109,000 = $26,160

You might be interested in
Auto Parts, Inc. is medium-sized company that manufactures auto parts in Buffalo, New York. The company currently loses $40,000
Firlakuza [10]

Answer:

I agree with the owner of the company

Explanation:

The overall losses are $40,000 per month and the fixed costs are $30,000 per month.

The company should stop production because the losses are over fixed cost and this tells us that the company is not even able to recover the variable costs and because the variable costs are not at least recovered, there would be no point for the company to continue in the business as it would keep on making a loss and the logic might be wrong regarding sunk costs but the decision must be taken in favour where production should be stopped.

7 0
3 years ago
LO 8.5When might an unfavorable variance be a good outcome?
ivolga24 [154]

Answer: An unfavorable variance can be used to detect a drop in estimated income early, and then solutions to the challenge can be identified.

Explanation:

An unfavorable variance is the difference between a company's projected expectation and the actual outcome of a financial activity of the company, where the actual outcome is less favorable than the projected expectation.

The information from an unfavorable variance can help alert a company to a negative outcome early, and the company's leadership can then find ways of solving the cause of the negative outcome.

7 0
3 years ago
Shawn exchanges a factory building for an apartment building in a qualifying like-kind exchange. The factory has a basis of $350
Setler [38]

Answer:

a.$30,000

b.The alternative i could suggest to Shawn is that he may sell the factory building instead of him to purchase the apartment building in order for him to recognize the loss which will inturn lower his taxes.

Explanation:

a. Calculation of what is Shawn’s realized gain or loss and the basis of the apartment building

Since Shawn tend to received the apartment building which has a Fair Market Value of $320,000 in exchange of his $350,000 worth of factory , this means he had a lost of $30,000 which is calculated as ($320,000-$350,000) which can therefore be deferred

b. The alternative i could suggest to Shawn is that he may sell the factory building instead of him to purchase the apartment building in order for him to recognize the loss which will inturn lower his taxes.

6 0
2 years ago
which account option is designed to house money for easy access, either by check or by debit card? certificate of deposit checki
marta [7]

A checking account is the type of account option that is designed to house money for easy access, either by check or by debit card.

<h3>What is a checking account?</h3>

It is also called a transaction account. It is a bank account that allows you to easily deposit & withdraw money for daily transactions. A checking account can also include depositing a check you receive, taking out cash with your debit card or setting up direct deposit for your paychecks.

Hence, the checking account is the type of account option that is designed to house money for easy access, either by check or by debit card.

Therefore, the Option B is correct.

Read more about checking account

brainly.com/question/24751568

#SPJ1

7 0
1 year ago
Bobby Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and contribution margin per unit for
V125BC [204]

Answer:

1,500 units; 1,000 units

Explanation:

Break Even Point (in units) = Fixed cost ÷ Contribution margin per unit

Fixed cost = $160,000

Sales Mix = 60% of X + 40% of Y

                = 0.6X + 0.4Y

So,

Contribution Margin of the Mix:

= (60% × contribution margin of X) + (40% × contribution margin of Y )

Contribution Margin of the Mix per unit:

= (60% × 80) + (40% × 40)

= 48 + 16

= $64

Break Even Point (in units) = Fixed cost ÷ Contribution margin per unit  

                                            = 160,000 ÷ 64

                                            = 2,500 unit

At the Level of break even :

Unit of X at break-even:

= 60% of 2,500

= 1,500 units

Unit of Y at break-even:

= 40% of 2,500

= 1,000 units

3 0
3 years ago
Other questions:
  • Based on the following information for Montana​ Investments, Inc., compute the rate of return on total assets.​ (Round the perce
    10·1 answer
  • Bradley is sitting on his porch enjoying his very large front yard and drinking a lemonade when chris, a kid from down the stree
    5·1 answer
  • A location analysis has been narrowed down to two locations, Akron and Boston. The main factors in the decision will be the supp
    7·2 answers
  • It is estimated that the average cost of an outbound telemarketing sales calls on a business customer is about __________, versu
    10·1 answer
  • Maurice has been operating his business as a sole proprietorship but decides that it is too much work for him to do alone. He do
    12·1 answer
  • Joan Wilder receives a phone call from a salesman who tries to sell her an insurance policy by scaring her about her high risk o
    15·1 answer
  • The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, whil
    8·1 answer
  • What might you need to do to renew your credentials?
    5·2 answers
  • Create a simple sketch showing what Hawkins and Crusoe could produce if the two men lived independently on different sides of th
    7·1 answer
  • A credit memorandum results in a(n) _____ in a customer's accounts receivable file.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!